Employee Benefit Plans

Dominion

The components of Dominion's provision for net periodic benefit cost (credit) were as follows:



	Pension Benefits						Other Postretirement Benefits
	2014			2013			2014			2013
(millions)
Three Months Ended September 30,
Service cost	$	29		$	31		$	7		$	10
Interest cost	73			69			17			19
Expected return on plan assets	(126		)	(116		)	(28		)	(24		)
Amortization of prior service cost (credit)	—			—			(7		)	(3		)
Amortization of net actuarial loss	28			37			1			2
Settlements and curtailments	1			—			—			—
Net periodic benefit cost (credit)	$	5		$	21		$	(10	)	$	4
Nine Months Ended September 30,
Service cost	$	86		$	100		$	23		$	34
Interest cost	218			202			50			56
Expected return on plan assets	(376		)	(345		)	(83		)	(68		)
Amortization of prior service cost (credit)	2			2			(21		)	(9		)
Amortization of net actuarial loss	84			127			2			6
Settlements and curtailments⁽¹⁾	1			(2		)	—			(15		)
Net periodic benefit cost (credit)	$	15		$	84		$	(29	)	$	4

(1) 2013 amounts relate primarily to the decommissioning of Kewaunee.

Employer Contributions

During the nine months ended September 30, 2014, Dominion made no contributions to its defined benefit pension plans or other postretirement benefit plans. Dominion expects to contribute approximately $12 million to its other postretirement benefit plans through VEBAs during the remainder of 2014.

Dominion Gas

Dominion Gas participates in certain Dominion benefit plans as described in Note 17 in Exhibit 99.11(b) to Dominion Gas’ Current Report on Form 8-K dated June 26, 2014. At September 30, 2014 and December 31, 2013, Dominion Gas’ amounts due from Dominion associated with the Dominion Pension Plan and reflected in noncurrent pension and other postretirement benefit assets in the Consolidated Balance Sheets were $604 million and $577 million, respectively. At September 30, 2014 and December 31, 2013, Dominion Gas’ amounts due to Dominion associated with the Dominion Retiree Health and Welfare Plan and reflected in other deferred credits and other liabilities in the Consolidated Balance Sheets were $10 million and $14 million, respectively.

The components of Dominion Gas' provision for net periodic benefit credit for employees represented by collective bargaining units were as follows:



	Pension Benefits						Other Postretirement Benefits
	2014			2013			2014			2013
(millions)
Three Months Ended September 30,
Service cost	$	3		$	3		$	1		$	1
Interest cost	7			7			4			3
Expected return on plan assets	(29		)	(27		)	(6		)	(4		)
Amortization of prior service cost (credit)	1			1			—			(1		)
Amortization of net actuarial loss	5			6			—			—
Net periodic benefit credit	$	(13	)	$	(10	)	$	(1	)	$	(1	)
Nine Months Ended September 30,
Service cost	$	9		$	10		$	4		$	5
Interest cost	21			20			10			9
Expected return on plan assets	(86		)	(79		)	(17		)	(13		)
Amortization of prior service cost (credit)	1			1			(1		)	(3		)
Amortization of net actuarial loss	14			20			—			1
Net periodic benefit credit	$	(41	)	$	(28	)	$	(4	)	$	(1	)

Employer Contributions

During the nine months ended September 30, 2014, Dominion Gas made no contributions to its defined benefit pension plans or other postretirement benefit plans. Dominion Gas expects to contribute approximately $12 million to its other postretirement benefit plans through VEBAs, for both employees represented by collective bargaining units and employees not represented by collective bargaining units, during the remainder of 2014.

Plan Amendment and Re-measurement

In the third quarter of 2014, East Ohio re-measured its other postretirement benefit plan as a result of an amendment that changed medical coverage upon the attainment of age 65 for certain future retirees effective January 1, 2016. The re-measurement resulted in an increase in the accumulated postretirement benefit obligation of approximately $22 million. The impact of the re-measurement on net periodic benefit credit was recognized prospectively from the re-measurement date. The re-measurement is expected to reduce net periodic benefit credit for 2014 by less than $1 million. The discount rate used for the re-measurement was 4.20%. All other assumptions used for the re-measurement were consistent with the measurement as of December 31, 2013.

Mortality Study

In October 2014, the Society of Actuaries published new mortality tables and mortality improvement scales. Such tables and scales are used to develop mortality assumptions for use in determining pension and other postretirement benefit liabilities and expense. Dominion and Dominion Gas are currently evaluating the new tables and cannot predict the impact they may have on the financial statements, however, the impacts could be material.